August 2026 News Roundup
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India’s Rough Trade Push
India passed legislation providing a 15-year income tax exemption for eligible foreign mining companies, sightholders, brokers, aggregators and tender or auction operators selling rough diamonds through the country’s Special Notified Zones (SNZs). The exemption applies from October 1, 2026 through March 31, 2041.
India is seeking to establish itself as a global rough trading hub. As the new legislation was passed, a Namibian government delegation visited Mumbai to explore direct rough trade with India, with the two sides discussing a potential memorandum of understanding.
Russia delayed the introduction of an 8% export duty on rough diamonds to March 1, 2027, from September 1, 2026, Interfax reported, citing a government decree. The levy, covering rough diamonds weighing 0.45 carats and above, is designed to support Russia’s domestic cutting industry but could add pressure on Alrosa, which exports about 90% of its production.
Cutting Closer to Source
Alrosa is developing a diamond-cutting cluster in Russia’s Smolensk region and Yakutia as part of a government initiative to expand domestic manufacturing and retain more value from the country’s rough production. The program, which takes effect March 1, 2027, will provide participating companies with access to rough diamonds, production facilities and preferential financing. Alrosa has already prepared three manufacturing zones at its Kristall plant in Smolensk.
Russian President Vladimir Putin met with Alrosa CEO Pavel Marinychev to discuss the diamond industry’s outlook, the company’s performance and its major investment projects. These include the Mir-Gluboky underground mine, which is expected to support production through 2070. Marinychev highlighted government efforts to expand domestic diamond manufacturing and welcomed new regulations, effective September 1, that will require clearer differentiation between natural and synthetic diamonds in Russia.
Diarough has opened a diamond cutting and polishing factory at Angola’s Saurimo Diamond Development Hub. The company hopes to create 130 jobs through the facility and aims to reach a polished-production capacity of 4,000 carats within two years. The facility forms part of Angola’s push to expand domestic processing, with rough allocated for local cutting and polishing rising more than fourfold between 2021 and 2025.
Russia Rules Extended
The US has extended until September 1, 2027, an authorization allowing imports of certain non-industrial diamonds that were outside Russia before G7 restrictions took effect, the Treasury Department said. The measure for so-called grandfathered goods does not apply to Russian-origin diamonds, which remain prohibited, or to transactions involving sanctioned persons.
De Beers Sale Clarification
Anglo American is still considering multiple bidders for De Beers, CEO Duncan Wanblad told reporters, rejecting claims that the company had selected a preferred consortium. Wanblad also ruled out a public listing, saying capital markets currently lack the capacity for such a deal, while adding there has been “some real traction” toward a trade sale. Anglo expects to provide an update in the second half of 2026.
Mines Under Pressure
Petra Diamonds said creditors have approved a business rescue plan for the Finsch mine in South Africa after the mine’s administrators determined there was no viable path to restart operations. The plan provides for the sale of Finsch’s assets to maximize recoveries for creditors, with a skeleton workforce remaining temporarily to support the process.
A South African court has suspended the provisional liquidation of Ekapa Minerals and placed the diamond miner under business rescue following an application by the National Union of Metalworkers of South Africa (NUMSA). The restructuring plan is expected to preserve about 500 jobs and maintain operations at parts of the mine unaffected by a fatal mudslide in February.
Uneven Miner Results
Alrosa reported a 33% year-on-year decline in revenue to RUB 90.3 billion ($1.08 billion) in the first half of 2026, as it recorded a net loss of RUB 9.54 billion ($114.5 million), the Russian company reported in its IFRS filing. The miner pointed to normalized inventories in India and firmer demand for larger diamonds as reasons for optimism, although the results suggest that any recovery remains uneven and has yet to filter through to broader rough demand.
Lucara Diamond Corp. reported profit rose 24% year on year to $15.6 million in the second quarter, despite a 6% decline in revenue to $41 million, as lower costs and a foreign exchange gain boosted earnings. Sales volume fell 24% while the average price rose 24%, with sales of specials to HB Antwerp flat at $33.9 million, tender sales down 30% to $5.4 million and transactions through the Clara platform falling 10% to $1.7 million.
Mountain Province reported sales grew 18% year on year to CAD 43.5 million ($31.3 million) in the second quarter, amid signs of improving market conditions and tightening supply. Sales volume more than doubled to 869,520 carats, while the average price fell 45% to $36 per carat. Net loss widened to CAD 120.6 million ($86.9 million) from CAD 37.7 million ($27.2 million) a year earlier.
Rough Still Lags
India’s polished-diamond exports fell 18% year on year to $876 million in July, according to the Gem and Jewellery Export Promotion Council (GJEPC). Export volume grew 4% to 1.41 million carats, while the average price declined 21% to $622 per carat. Rough imports fell 10% to $1.03 billion, with volume up 5% and the average price down 14%.
Antwerp’s diamond trade continued to stabilize in July, with polished exports rising 1% year on year to $499.2 million, according to the Antwerp World Diamond Centre (AWDC). Polished imports increased 4% to $414.3 million. The rough market remained under pressure, with imports down 42% to $241.1 million and exports falling 28% to $255.1 million.
Hong Kong’s diamond trade rose sharply in the first half of 2026, driven by stronger polished shipments to India and a surge in rough imports from Russia, the Diamond Federation of Hong Kong, China reported. Polished imports increased 9% year on year to $5.77 billion and exports rose 8% to $5.37 billion, while rough imports jumped 58% to $768.7 million and rough exports climbed 54% to $765.2 million.
Small Goods Recover
Polished diamond prices continued to strengthen in July, with lower production supporting the recovery in smaller goods, according to Rapaport. The Rapaport Trade Diamond Index (RAPI) for 0.30-carat diamonds rose 1.6% during the month and was up 9.4% for the first seven months of the year, while the 0.50-carat index increased 1.8%. The 1-carat and 3-carat indices were unchanged.
The Fancy Color Research Foundation's Fancy Color Diamond Index slipped 0.1% in the second quarter, marking a second consecutive quarter of minimal movement and underscoring the stability of the fancy-color diamond market. Pink diamonds rose 0.1%, while yellow and blue diamonds declined 0.3% and 0.4%, respectively, with the overall index down just 0.5% from a year earlier, FCRF reported.
Midstream Squeeze
Asian Star reported revenue fell 11% year on year to INR 6.47 billion ($68.4 million) in the fiscal first quarter ending June 30, dragged down by a 22% drop in loose diamond sales to INR 4.26 billion ($45 million). Revenue from jewelry grew 17% to INR 2.35 billion ($24.8 million). Group profit fell 38% to INR 121 million ($1.28 million).
Sarine Technologies reported a net loss of $3.5 million in the first half of 2026, widening from $166,000 a year earlier, as revenue fell 6% to $14.4 million and expenses rose. The company said natural diamond manufacturers continued to process lower volumes amid competition from lab-grown diamonds. Revenue was flat in India, rose 18% in Africa and 11% in the US, while declining in Europe, Israel and other markets.
Retail Holds Up
The number of jewelers operating in the US fell 1.5% year on year to 21,892 businesses in the second quarter, according to the Jewelers Board of Trade (JBT). Retailers accounted for 76% of the total, wholesalers 15% and manufacturers 9%. Eighty new businesses opened during the period, matching the number that discontinued, including 60 that ceased operations, 11 consolidations and nine bankruptcies.
Hong Kong's sales of jewelry, watches, clocks and valuable gifts rose 20% year on year in June, according to the Hong Kong Census and Statistics Department. Overall retail sales increased 4.6%, marking a 14th consecutive month of growth, supported by continued economic expansion, rising household income and a steady increase in inbound tourism, the department said.
Swiss watch exports grew 10% year on year to CHF 2.63 billion ($3.28 billion) in July, according to the Federation of the Swiss Watch Industry. Growth was driven by a 27% jump in shipments to the US to CHF 701.3 million ($876.7 million), while exports of precious-metal watches rose 4% and gold-steel watches increased 24%.
Growth Through Ticket Size
Gross jewelry sales at US independent jewelers rose 10% year on year in July, driven by a 12% increase in the average retail sale despite a 2% decline in unit sales, according to The Edge Retail Academy. Diamond jewelry sales increased 11%, with unit sales up 1% and the average retail sale rising 9%.
Brilliant Earth's sales rose 6% year on year to $115.1 million in the second quarter, driven by an 8% increase in average order value to $2,238. The jewelry retailer swung to a net profit of $842,000 from a loss of $1.1 million a year earlier, as growth in its fine jewelry business continued to outpace bridal, CEO Beth Gerstein said.
Pandora reported revenue grew 2% year on year to DKK 7.22 billion ($1.12 billion) in the second quarter, while net profit rose 9% to DKK 875 million ($135.4 million). Growth was driven by momentum in Latin America and Asia Pacific, while its larger markets in Europe, the Middle East and Africa, and North America were stable. Revenue from lab-grown diamonds fell 16% to DKK 71 million ($11 million).
Mumbai-based retail jewelry group Titan Company reported consolidated net profit surged 63% year on year to INR 17.77 billion ($186.3 million) in the fiscal first quarter ending June 30. Revenue grew 29% to INR 215.02 billion ($2.25 billion), driven by double-digit growth in buyers and a sizeable increase in average ticket size across the key plain and studded jewelry categories, the company said.
Chow Sang Sang reported revenue grew 17% year on year to HKD 12.88 billion ($1.64 billion) in the half year ended June 30, while group profit surged to HKD 2.15 billion ($274.5 million). The jewelry chain recorded growth across its key markets of mainland China, Hong Kong and Macau, and Taiwan, while lab-grown diamond trading fell 25% to HKD 2.6 million ($329,000).
Michael Hill reported sales rose 2% year on year to AUD 654.7 million for the year ended June 28, driven by growth across all regions. Same-store sales increased 5% in Australia, 7% in Canada and 3.6% in New Zealand, while earnings before interest and tax (EBIT) is expected to reach AUD 22 million to AUD 24 million, up from AUD 15.3 million a year earlier.
Retail Watch
Birks Group plans to voluntarily delist its shares from the New York Stock Exchange (NYSE) American after falling out of compliance with the exchange’s continued listing standards. The Canadian jewelry retailer expects its last day of trading on the exchange to be around August 27, after which its shares will begin trading on the OTCQB Venture Market.
Tse Sui Luen Jewellery said a former procurement manager pleaded guilty to misappropriating diamonds obtained from the company’s suppliers and reselling them for personal gain between 2017 and 2023. The Hong Kong jeweler estimates its net financial exposure at about HKD 3 million ($382,000) after compensating suppliers and accounting for insurance recoveries, and said the incident would not materially affect its financial position or operations.
Iconic Necklace Stolen
A Van Cleef & Arpels diamond necklace from the collection of Queen Nazli of Egypt was stolen from Vienna’s Museum of Applied Arts during its Glanzstücke high-jewelry exhibition, after two men allegedly smashed a display case with a hammer. No one was harmed in the incident. The museum remains open, but the affected exhibition was temporarily closed as police continued their investigation
Trade Relations
The Qatar Diamond Exchange (QDE) signed agreements with the diamond exchanges in Singapore, Shanghai and Tokyo to strengthen trade and cooperation with key Asian markets. The partnerships will facilitate business connections, bilateral visits and participation in tenders and industry events, while promoting international standards and responsible practices.
The London Diamond Bourse has introduced three membership tiers aimed at making access more flexible and affordable for diamond and jewelry businesses. The new Affiliate, Associate and Full Member tiers cost £500, £2,000 and £6,950, respectively, with lower tiers offering pay-as-you-go access to facilities including trading floors, viewing rooms and diamond verification equipment.
The British Academy of Jewellery (BAJ) is closing its higher education courses in London, Birmingham, Leicester and Sheffield, affecting up to 220 students. The Office for Students said BAJ’s partners, Kingston University and Pearson, will support affected students in continuing their studies with alternative providers.
Disclosure Debate
The American Gem Trade Association has released the 17th edition of its Gemstone Information Manual, adding disclosure symbols for assembled stones, heating with residue and waxing, while updating treatment and care guidance for certain gems. It also revised its code of ethics to require members to use “synthetic” for man-made gemstones with the same properties as natural counterparts, ruling that “lab-grown” may not be used alone.
Leadership Changes
Okavango Diamond Company (ODC), Botswana’s state-owned rough-diamond trader, has appointed Yoram Dvash as its chairman. Dvash, a diamond trader who recently stepped down as president of the World Federation of Diamond Bourses (WFDB), is joined on the new ODC board by Michael Mogopa, Lesego Molapisi-Conrad, Lesley Bradley and Pius Komane Molefe.
Signet Jewelers has appointed Jamie Cygielman president of Zales and Banter, while Pam Cloud has joined the company as president of Blue Nile. Cloud, who spent more than 25 years at Tiffany & Co., will lead Blue Nile’s transformation into a more elevated luxury brand focused on natural diamonds, while Cygielman joins from Mattel.
Pandora appointed André Branch as president of its North America business, effective August 15, as the jeweler seeks to accelerate growth in one of its largest markets. Branch joins from the beauty industry, most recently serving as CEO of R.E.M. Beauty, and previously held senior roles at Estée Lauder, L'Oréal and other consumer brands. He succeeds Luciano Rodembusch, who left the company in February.
Jewelers Mutual CEO Scott Murphy will retire at the end of 2026 after 12 years at the helm, with current president Mike Alexander set to succeed him as president and CEO on January 1, 2027. Murphy, who will remain on the company’s board, oversaw its expansion from a specialty insurer into a diversified insurance and business-solutions provider serving more than 2 million customers across the US and Canada.
The Plumb Club has elected Steven Lerche of Goldstar as president for the 2026/27 term, with Ray Mastoloni of Mastoloni Pearls named vice president. Debbie Azar of Gemological Science International will serve as treasurer, Jeff Weinman of ODI/Tache as secretary, and Michael Lerche of Goldstar as pavilion chairperson.
Birks has named Canadian actress Sophie Nélisse as a brand ambassador and launched a national campaign focused on the personal meaning and memories attached to jewelry. The campaign debuts with pieces from the Birks Dare to Dream collection and will later feature its Snowflake and Beekeeper lines.
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